Australia’s largest institutional bond funds have thrown their support behind the corporate watchdogs probe into potential manipulation of the key bank bill swap rate used to price hundreds of billions in investments.

Expectations are building that the RBA will chisel its cash rate to record lows. Westpac's Bill Evans is calling back-to-back cuts in February and March (after previously forecasting that the next move was up).

Equities are expensive, fixed-rate government bonds are in the biggest bubble in history and Aussie housing is not far behind. So how can one eke out reasonable returns without internalising unacceptable risks?

David Murray’s hard-hitting financial system inquiry report will not disappoint those who wanted to see far-reaching reforms with its most enduring legacy being a much more egalitarian and safer banking system.

Christopher Joye

Christopher Joye is a contributing editor to The Australian Financial Review. He is a leading economist, fund manager and policy adviser who has previously worked for Goldman Sachs and the RBA, and was a director of the Menzies Research Centre. He is currently a director of Smarter Money Investments.